Expectations vs. Reality Concerning Retirement

One in four retirees think life in retirement is worse than it was before they retired
according to a poll by the Harvard School of Public Health, the Robert Wood Johnson
Foundation and NPR. The poll shows stark differences between what pre-retirees
think retirement will be like, and what retirees say is actually the case.

BACKGROUND MATERIALS

"Those of us over 50 and working are optimistic about our future health and
health care, but that optimism is not necessarily shared by those who have already
retired," said Risa Lavizzo-Mourey, MD, MBA, president and CEO of the Robert Wood
Johnson Foundation. "Many people who have already retired say their health is
worse, and they worry about costs of medical treatment and long-term care. Insights
from the poll can help policy makers and others think about how to meet the needs
of aging Americans. There are changes we can make to our health care system,
finances and communities that might help ensure that our retirement years will be
as fulfilling as we hope."

The poll focuses on views and experiences related to retirement among people
over age 50, including not only people who have retired, but also people who plan
to retire ("pre-retirees") and those who do not plan to do so. It was conducted by
researchers at the Harvard School of Public Health.

"The poll shows that a significant number of people who are near retirement may
be underestimating the challenges of retirement," said Robert Blendon, professor of
Health Policy and Political Analysis at the Harvard School of Public Health. "When
you compare what people think retirement will be like with what retirees say it
actually is like, there are big differences. Pre-retirees may underestimate the degree
to which their health and finances may be worse in retirement."

Methodology

This poll is part of an on-going series of surveys developed by researchers at the
Harvard Opinion Research Program (HORP) at the Harvard School of Public Health
in partnership with the Robert Wood Johnson Foundation and NPR. The research
team consists of

Harvard School of Public Health: Robert J. Blendon, Professor of Health Policy and
Political Analysis and Executive Director of HORP; Gillian K. SteelFisher, Research
Scientist and Assistant Director of HORP; Johanna Mailhot, Research Specialist; and
Eran Ben-Porath of SSRS/ICR, an independent research company.

Interviews were conducted via telephone (including both landline and cell
phone) by SSRS/ICR of Media (PA) July 25 to August 18, 2011 among a nationally
representative sample of 1254 adults over 50. It includes 755 are retirees and 409
are pre-retirees (those who have not retired but plan to). The margin of error for
total respondents is +/-3.32% at the 95% confidence level.

Possible sources of non-sampling error include non-response bias, as well as
question wording and ordering effects. Non-response in telephone surveys
produces some known biases in survey-derived estimates because participation
tends to vary for different subgroups of the population. To compensate for these
known biases and for variations in probability of selection within and across
households, sample data are weighted by household size, cell phone/landline
use and demographics (sex, age, race/ethnicity, education, marital status and
census region) to reflect the true population. Other techniques, including random-
digit dialing, replicate subsamples, and systematic respondent selection within
households, are used to ensure that the sample is representative.

About the poll

One in four retirees think life in retirement is worse than it was before they retired, according
to a poll by NPR, the Robert Wood Johnson Foundation and the Harvard School of Public Health.